Concrete

Always Escalate, so as not to Escalate

Published

3 years ago

July 1, 2021

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Languages are such wonderful medium of human expression, because words can have such myriad meanings. There are many words which mean quite different things, taken in context. Unfortunately, here we are not talking about languages, but about project management. ??lways escalate, so as not to escalate??may sound, at first glance, like a meaningless play with words, but it is really not so, in our context. Check out these meanings: Escalate ??To increase in intensity or extent, or Escalate ??To become more serious, or be amplified.

Here, in this column, I mean to say that one must always escalate issues and problems to higher levels at the earliest opportunity, so as to avoid escalation of project cost and time. From my exposure to Project successes and failures, this is a very core issue in project management. Project cost escalation (time and cost are inextricably connected) is a very dreaded word in project management parlance. Not only dreaded, but also hated! But as long as there will be projects, there will remain the possibility of time/cost escalations. Unforeseen things happen, unprecedented situations develop, circumstances spin out of control, and these tend to delay projects and increase costs.

But in almost all cases, there are ways to manage and reduce the impact of these unforeseen things, provided we decide on a solution and act quickly to implement the solution. This is where we fail, because we do not highlight these events, rather we tend to push these below the proverbial carpet, as if they will vanish on their own. Why does this happen? There are two very interesting reasons, one hierarchical, and the other behavioural, and both act in tandem.

No organisation is absolutely flat, and there are levels. This is true for project teams also. In all cases, there will at least be three levels. There are operating people in the field, there is a manager who is responsible for leading and guiding the team, and then there will be so called ??op management?? which could be a CEO, or a Board, or a similar body assigned for review and/or oversight. Now, nascent problems in a project, such as insipient causes for delay, are likely to be known first to the operating level, who have their ??ars glued to the ground??

Think of it, who is most likely to get early signals of possible delays in designing of a building, or manufacturing of a critical component, or construction of a crucial structure, or a key regulatory approval ? who will know first, about a strike in a supplier?? factory, about an agitation at construction site, or about resignation of a key member of sub-contractors??team ? First to know will be the ??oot soldiers??of a project team. Now, this is very powerful information, with far-reaching consequences. However, sadly, officials at this level are not empowered to analyse the impact of such delays, leave alone evolve a solution. The knowledge to do so, and the authority to do so, lies one or two hierarchical levels higher up. And, more often than not, the information is not escalated upwards. Why not? That brings us to the second interesting reason.

This has to do more with psychology than project management per se. We all have an instinctive tendency to hush up bad news because we feel if we pass on these information, it will be taken as our failure. We try to resolve the problem at our level, and in the process waste precious time for intervention. What we do not realise, is that small adversities, when suppressed, may well become huge irreversible setbacks for a project, and that in these matters, speed of escalation and transparency always pay.

The sooner the bad news is known, the better it is, because the corrective actions can be taken immediately. But such rational thinking is often layered by the fear of immediate and short term outcomes of so-called failures. This is a cultural issue, this has to do more with our minds, than with our sense of logic. In larger project organisations, this phenomenon may also be driven by some nuances of internal politics. In any case, the project suffers. To get round this well-known issue, sometimes top management deploys informal and alternative channels to ensure flow of such information directly from field to boardroom. This is a crude workaround, because this kind of strategies undermine the formal organisation structures and dilutes accountability.

– SUMIT BANERJEE

Concrete

Jefferies’ Optimism Fuels Cement Stock Rally

The industry is aiming price hikes of Rs 10-15 per bag in December.

Published

3 weeks ago

December 4, 2024

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Cement stocks surged over 5% on Monday, driven by Jefferies’ positive outlook on demand recovery, supported by increased government capital expenditure and favourable price trends.

JK Cement led the rally with a 5.3% jump, while UltraTech Cement rose 3.82%, making it the top performer on the Nifty 50. Dalmia Bharat and Grasim Industries gained over 3% each, with Shree Cement and Ambuja Cement adding 2.77% and 1.32%, respectively.

“Cement stocks have been consolidating without significant upward movement for over a year,” noted Vikas Jain, head of research at Reliance Securities. “The Jefferies report with positive price feedback prompted a revaluation of these stocks today.”

According to Jefferies, cement prices were stable in November, with earlier declines bottoming out. The industry is now targeting price hikes of Rs 10-15 per bag in December.

The brokerage highlighted moderate demand growth in October and November, with recovery expected to strengthen in the fourth quarter, supported by a revival in government infrastructure spending.
Analysts are optimistic about a stronger recovery in the latter half of FY25, driven by anticipated increases in government investments in infrastructure projects.
(ET)

Concrete

Steel Ministry Proposes 25% Safeguard Duty on Steel Imports

The duty aims to counter the impact of rising low-cost steel imports.

Published

3 weeks ago

December 4, 2024

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The Ministry of Steel has proposed a 25% safeguard duty on certain steel imports to address concerns raised by domestic producers. The proposal emerged during a meeting between Union Steel Minister H.D. Kumaraswamy and Commerce and Industry Minister Piyush Goyal in New Delhi, attended by senior officials and executives from leading steel companies like SAIL, Tata Steel, JSW Steel, and AMNS India.

Following the meeting, Goyal highlighted on X the importance of steel and metallurgical coke industries in India’s development, emphasising discussions on boosting production, improving quality, and enhancing global competitiveness. Kumaraswamy echoed the sentiment, pledging collaboration between ministries to create a business-friendly environment for domestic steelmakers.

The safeguard duty proposal aims to counter the impact of rising low-cost steel imports, particularly from free trade agreement (FTA) nations. Steel Secretary Sandeep Poundrik noted that 62% of steel imports currently enter at zero duty under FTAs, with imports rising to 5.51 million tonnes (MT) during April-September 2024-25, compared to 3.66 MT in the same period last year. Imports from China surged significantly, reaching 1.85 MT, up from 1.02 MT a year ago.

Industry experts, including think tank GTRI, have raised concerns about FTAs, highlighting cases where foreign producers partner with Indian firms to re-import steel at concessional rates. GTRI founder Ajay Srivastava also pointed to challenges like port delays and regulatory hurdles, which strain over 10,000 steel user units in India.

The government’s proposal reflects its commitment to supporting the domestic steel industry while addressing trade imbalances and promoting a self-reliant manufacturing sector.

(ET)

Concrete

India Imposes Anti-Dumping Duty on Solar Panel Aluminium Frames

Move boosts domestic aluminium industry, curbs low-cost imports

Published

3 weeks ago

December 4, 2024

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The Indian government has introduced anti-dumping duties on anodized aluminium frames for solar panels and modules imported from China, a move hailed by the Aluminium Association of India (AAI) as a significant step toward fostering a self-reliant aluminium sector.

The duties, effective for five years, aim to counter the influx of low-cost imports that have hindered domestic manufacturing. According to the Ministry of Finance, Chinese dumping has limited India’s ability to develop local production capabilities.

Ahead of Budget 2025, the aluminium industry has urged the government to introduce stronger trade protections. Key demands include raising import duties on primary and downstream aluminium products from 7.5% to 10% and imposing a uniform 7.5% duty on aluminium scrap to curb the influx of low-quality imports.

India’s heavy reliance on aluminium imports, which now account for 54% of the country’s demand, has resulted in an annual foreign exchange outflow of Rupees 562.91 billion. Scrap imports, doubling over the last decade, have surged to 1,825 KT in FY25, primarily sourced from China, the Middle East, the US, and the UK.

The AAI noted that while advanced economies like the US and China impose strict tariffs and restrictions to protect their aluminium industries, India has become the largest importer of aluminium scrap globally. This trend undermines local producers, who are urging robust measures to enhance the domestic aluminium ecosystem.

With India’s aluminium demand projected to reach 10 million tonnes by 2030, industry leaders emphasize the need for stronger policies to support local production and drive investments in capacity expansion. The anti-dumping duties on solar panel components, they say, are a vital first step in building a sustainable and competitive aluminium sector.